A cheque bounce or cheque non-payment in a serious offense in India punishable with imprisonment or fine under Section 138 of the Negotiable Instruments Act. A cheque beneficiary must present the cheque issuer with a notice under section 138 within 30 days of return of the cheque to protect his/her rights under Section 138 of the Negotiable Instruments Act. A Section 138 Notice is a firm and serious intimation to the cheque issuer that the cheque beneficiary will proceed with further action if payment for the cheque is not made immediately. The Section 138 notice usually usually contains reference to Section 138 of the Negotiable Instruments Act, information about when the cheque was presented, the reason for non-realization of payment and a request to the cheque issuer to arrange for payment through alternate means. A Section 138 Notice must be presented to the cheque issuer within 30 days of return of cheque due to non-payment to be valid.

This Section 138 Notice format and generator can be used by a cheque beneficiary to draft a Section 138 Notice addressed to the cheque issuer. Once, the Section 138 notice is generated, it can be printed on the letterhead of the business and delivered to the cheque issuer with acknolodgement.

This Section 138 notice can be printed on the letterhead of the business or on a plain white paper with the logo or information about the Company. Section 138 notice for dishonor of cheque must be signed by the beneficiary of the cheque and addressed to the cheque issuer. One copy of the letter can be retained by the cheque's beneficiary while the other copy is delivered to the cheque issuer with acknolodgement.